Black box provider Quindell tried to quell market rumours after share prices fell to a fourteen-month low yesterday.
In a statement to the stock exchange, the usage based insurance (ubi) provider wrote: “The Board of Quindell…notes the recent share price performance and confirms that it knows of no reason for such falls.”
The voluntary statement comes after the insurer had to can its telematics project with RAC this month.
The RAC had been put under pressure to pull out of the joint venture as Quindell was widely criticised in a 75-page long report by short sellers Gotham City Research. Following the publication £1bn was wiped off Quindell’s share price. The insurer has since won its libel case against the controversial research firm.
Despite the judgement, rumours over employee pay and the recent telematics woes are still driving shares down, analysts have said.
“There have been a couple of mis-rumours floating around, specifically that Quindell is coming under competitive pressure in telematics and around its decision to change the date it is paying staff… to try and suggest this is a sign of anything is wrong as they are merely standardising the date they pay employees… the rumours are a non-issue,” Cenkos analyst Andy Bryant said in an interview with City A.M.